Can You Lose Money in a Fidelity Money Market Fund? Risks Explained

Learn about the risks of investing in Fidelity money market funds and whether you can lose money despite their low-risk nature.

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Yes, it's possible to lose money in a money market fund at Fidelity, just as with any investment. While money market funds are generally considered low risk and aim to maintain a stable value, they are not insured or guaranteed by the FDIC. Market conditions can impact the fund's value, so it's essential to review the fund's objectives and risk factors carefully before investing.

FAQs & Answers

  1. Are money market funds insured by the FDIC? No, money market funds are not insured or guaranteed by the FDIC, even though they are generally considered low risk.
  2. How can I lose money in a money market fund? You can lose money in a money market fund if market conditions affect the fund’s value, as these funds are not guaranteed to maintain a stable value.
  3. Are Fidelity money market funds safe investments? Fidelity money market funds are typically low risk and aim to preserve capital, but they still carry some risk since they are not FDIC insured.